Apple iPhone Sales Fall But Sets Record Profit Of $18.4 Billion

Apple core product is struggling under the economic crux, which accounts for two-third of its revenue.

The hot discussion on Apple’s earnings, declared on Tuesday, was the slow growth of iPhone sales. Without a doubt, the recent economic crunch has hit the high technology behemoth too. In 2016, the sale of world most popular handset rose by less than 1% in comparison to the past year’s same period.

Despite the slowing growth in sales, the $555 billion company declared earnings of $18.4 billion; the expected profit was $18.22 billion. It made revenue of $75.9, which fell short as compared to the expected revenue of $76.67 billion; unanimously projected by Thomson Reuters’ analysts. Apple has been reported to have sold 74.8 million iPhones in last quarter. The fact that it could not boost the sales over “holiday season” is alarming.  

It is the first time since the release of Apple wondrous product, “iPhone” in 2007. Also, last year, when it introduced a new version of the handset with larger-screen, the sales escalated. iPhone sales make up to two-third of the company’s revenue and any halt in its sales will decelerate the company’s growth. Apple’s other core products – iPad and Mac – did not have soaring sales earlier. Both witnessed a fall in sales by 25% and 4% respectively.

Many critics expressed that the latest and upgraded iPhone 6S was a minor upgrade and it could not stand firm in the mature smartphone market. The company views many external factors too, which hindered the sale of the handsets. The fluctuating currency rates have high effect on the overseas market. For instance, the high dollar rates would have discouraged the consumers’ purchasing power.

The suppliers have noted the decline in iPhone 6S orders. The handset’s sales in 2016 do not look promising either. Not a long time ago, Apple entered in China and generated hefty revenue but the “soft economic growth” of Asian superpower is a deterrent in the continuing growth of the company.  

The sales in China grew by 14% to $18.37 million, which was down as compared to the sales that grew by 84% in fiscal year ended in September 2015. However, not all is bad for Apple as its “other products” including Apple Watch, Apple TV, and Beats accessories generated the revenue of $4.4 billion; going up by 62%. Moreover, the whopping $18 billion quarterly profit is the highest and the best for any public company – going up by 2%. 

The world’s leading high-tech corporation anticipated that in the next couple of quarters, its revenue might fall close to $50 billion. The reason can be the that it puts more focus on its anticipated project; a self-driving car dubbed under the name ‘Project Titan’, but the project will not be uncovered until at least 2019, according to Wall Street Journal. As of now, the investors and analyst are setting their eyes on the Californian company for its latest iPhone 7 expected to be released in the mid of 2016.

Apple’s stock came down at $99.99 at the market close on Tuesday. Many analyst pundits feel that the stock is highly undervalued. They have anticipated the price target at $179.

Boeing Jet 737 Interior Redesigned Shown Off By Budget Airline Ryanair

Boeing has modified the interior and the cabin of its jet, 737, which is shown to the passengers by Budget Airline Ryanair.

Boeing recently made modification and redesigned its jet, 737. The modified airplane was given a sneak peak by Budget Airline Ryanair to its passengers. It had a theme of garish yellow earlier making it as its trademark. Now the interior is given a theme of white and blue by the aircraft manufacturer.

Boeing Co.’s 737 now has a theme of white and blue with a new cabin on its new airplanes, with slim seats consisting of a yellow headrest. The windows of the planes are now bigger and have built-in LED lighting.

One customer also tweeted regarding the development, “Yay, sunglasses no longer needed on the 6:30am flights.” The airline has reportedly faced issues in the past when it comes to customer satisfaction. This is one of the efforts made by it to make customers happy with the help of Boeing modified commercial airplanes.

Passengers complained in the past for having lesser legroom on the Ryanair flights, which will give more space to the passengers now, according to the airline. The redesigned aircraft have a modern sleek look. 

Ryanair is taking help of the aerospace giant’s aircrafts to satisfy its customers. It has also made other customer-oriented changes, such as better baggage policies and an enhanced website. Online bookings are now convenient which helps in saving passengers’ time.

In other news regarding the aerospace company, it is facing more investigation by the Federal Aviation Administration, which has ordered the business to fix 300 of its airplanes, the wide-bodied 767, preventing unpredictable release of the jets’ emergency escape slides so that accidents can be avoided. The regulatory took this decision because it received information about emergency slides inflation during operating flights.

The unexpected release of the jets escape slides was alarming for the administration, as it might cause injuries to the crewmember and even passengers. The aerospace company has changed its door valves in its airplanes. A 42-month deadline has been given to the airline and businesses that are using these airplanes. The most affected airline by this deadline is, Delta Airlines, which is operating many airplanes of Boeing.

This the first time the FAA has made such a proposition due to a past accident that was caused by one of the company’s manufactured airplane in 2013, when an accident took place and a jet 7777 crashed while landing on the San Francisco Airport. This news caused a wave of terror among the masses.